Phenex’s Program Focuses on Treating Liver Diseases Such as Nonalcoholic Steatohepatitis

Gilead Sciences Inc.
GILD -0.43%
said it reached a deal to buy a liver-disease treatment program from privately held biotechnology company Phenex Pharmaceuticals AG.

The transaction could be worth as much as $470 million, including an upfront payment and potential development milestones over time.

Germany-based Phenex’s farnesoid X receptor program focuses on treating liver diseases such as nonalcoholic steatohepatitis, or NASH, a chronic ailment that is estimated to affect up to 20% of people in the developed world, Gilead said in a news release Tuesday.

NASH is characterized by excessive fat accumulation and inflammation in the liver, and it could lead to cirrhosis, progressive fibrosis and liver failure, and there are no approved therapies to treat it, according to Gilead.

The farnesoid X receptor regulates lipid, bile acid and glucose homeostasis, which the company said can help reduce steatosis and inflammation in the liver, while potentially helping to prevent liver fibrosis.

The deal comes as Gilead faces increased competition in the market for liver-disease treatments as its Sovaldi and Harvoni drugs have become industry leaders in fighting hepatitis C.